Philex posts jump in 2010 earnings on high metal prices

Posted at 02/24/11 1:47 PM

MANILA, Philippines - Philex Mining Corp. on Thursday reported a 44% in last year's earnings, thanks to higher metal prices.

In a disclosure to the stock exchange, Philex said its net income rose to P3.95 billion in 2010 from P2.74 billion in 2009.

Core net income, which excludes extraordinary items, likewise increased by 124% to P4.15 billion from P1.85 billion.

Operating revenue hit a record high of P13.4 billion, up 48% year on year, due to high metal prices and increased output from the Philex's Padcal gold and copper project in Benguet province.

"The record results... for the year are indeed gratifying," said Philex chairman and CEO Manuel Pangilinan.

"Despite a slow start in the first half, the company boosted its performance across-the-board in the second half, producing a number of high numbers," he added.

Average realized gold price per ounce was $1,217 in 2010, up 29% from $946 in 2009, while copper price per pound was $3.63 from $2.24 in 2009.

As of end-December 2010, Philex's Padcal mine had proved reserves of 90.2 million tons, based on metal prices of $1,000 per ounce gold and $3 per pound copper at copper equivalent cut-off grade of 0.246%.

Philex has declared a cash dividend of 16 centavos per share for stockholders of record as of March 10, 2011. Payment will be made on April 5.